BMO Core Bond Fund - Advisor

Reasons to Invest in the Fund Fund Details

• For investors looking for reliable income and some potential for capital growth Portfolio Advisor:
• Fund is designed to be a core Fixed Income holding within a portfolio Portfolio Manager:
• Porfolio Managers use a risk aware approach to invest across multiple fixed
income asset classes Fund Inception Date:
Prospectus Risk Rating:
Fund Benchmark:
Growth of $10,000 as of 31/12/2020
$12,500 Minimum Investment:
$12,233 Subsequent Investment:
$12,000 Price/Unit (NAV):
AUM (total fund in millions):
$11,500
Management Fee:
MER:
$11,000
Distribution Frequency:
$10,500 Category:
BMO Asset Management Inc.
Andrew Osterback, Piper Kerr
November 13, 2014
Low
FTSE TMX Canada Universe
Bond Index
$500
$50
$10.91 as of 31/12/2020
$2,066.74 as of 31/12/2020
0.95%
1.17% as of 30/09/2020
Monthly
Canadian Fixed Income

$10,000
Oct14 Oct15 Oct16 Oct17
Graph shows comparative performance rate of price in increments of $10,000
Oct18 Oct19 Oct20
Asset Allocation as of 30/11/2020
■■Fixed Income 99.4%
Top Holdings as of 30/11/2020 ■■Cash 0.8%
■■Other -0.2%
Holdings %
Canada 1.250% 01-Jun-2030 7.1
Ontario 2.050% 02-Jun-2030 5.0
Government of Quebec 3.100% 01-Dec-2051 4.7
Ontario 2.650% 02-Dec-2050 4.0
Ontario 2.900% 02-Jun-2049 3.9
Canada 2.000% 01-Dec-2051 3.0 Geographical Allocation as of 30/11/2020
Government of Quebec 1.900% 01-Sep-2030 3.0
■■Canada 91.1%
Canada 2.750% 01-Dec-2048 1.9 ■■United States 7.1%
British Columbia 2.800% 18-Jun-2048 1.7 ■■Australia 0.9%
■■United Kingdom 0.6%
National Bank of Canada 3.183% 01-Feb-2028 1.7
■■Ireland 0.3%
Top Holdings (% of Portfolio) 36.0 ■■ Other -0.1%
Total Portfolio Holdings 258

Annual Compound Returns as of 31/12/2020

1 mo 3 mo 6 mo YTD 1 yr 2 yr 3 yr 5 yr 10 yr SI
0.3% 0.5% 0.7% 7.9% 7.9% 6.8% 4.6% 3.4% - 3.3% Bond Type Allocation* as of 30/11/2020
■■Corporate Notes/Bonds 54.8%
Calendar Year Returns as of 31/12/2020 ■■Provincial/Municipal Bonds 25.6%
■■Govt. Agency Notes/Bonds 19.5%
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 ■■ABS 0.1%

7.9% 5.8% 0.2% 2.1% 1.0% 1.9% - - - -

Fixed Income Characteristics as of 30/11/2020

Bond Term (%)
Duration (yrs) b Portfolio Yield a
1-5 yrs 5-10 yrs >10 yrs Credit Quality of Portfolio as of 30/11/2020
26.9 35.2 27.3 8.27 2.46% AAA 29.7% BBB 34.3%
AA 24.1% BB 0.5%
Distributions ($/unit) A 11.5%
2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 * Percentages are based on the fixed income portion of the portfolio.
Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan
Deferred
.2022 .0220 .0050 .0114 .0096 .0273 .0065 .0050 .0626 .0197 .0120 .0215
FundSERV Codes Front End† Low Load* Sales
Distribution Rate (annualized) c 2.15% as of 31/12/2020 Charge*
Advisor BMO99160 BMO98160 BMO97160
Standard Deviation** as of 31/12/2020 F (Fee Based) BMO95160
3 yr 4.5% 5 yr 4.2% 10 yr - * DSC closed to new purchase. As of November 2020, LL no longer
available for sale. †Front End = Sales Charge
BMO Core Bond Fund - Advisor
How Your Money Is Invested

The Fund aims to provide a high level of interest income along with some opportunity for growth. The portfolio manager will achieve this by:
• Investing primarily in Canadian dollar denominated investment grade debt instruments
• Utilizing fundamental research while employing an active investment style to identify overvalued and undervalued sectors of the fixed income
market
• Placing an emphasis on credit quality, security selection and active yield-curve management

Ideal Investor
• You are looking for a core Canadian fixed income fund for your portfolio
• You want the potential for income from government and corporate bonds, which form part of the fund’s portfolio
• You are comfortable with low investment risk (i.e., you are willing to accept some fluctuations in the market value of your investment over the short-
term)

Commentary as of 30/09/2020
• The Bank of Canada (BoC) kept its policy interest rate unchanged and maintained its quantitative easing program with large-scale asset purchases
in the third quarter of 2020 (“the quarter”). The BoC expects a long recovery phase of economic activity and the need for continued policy support.
While the reopening of businesses helped recover many of the jobs lost in early 2020, a significant amount of economic weakness and an unclear
path forward regarding COVID-19 remained. As a result, inflation expectations were firmly anchored at relatively low levels. The Canadian yield curve
steepened, albeit modestly, which benefited short-term bonds. Overall, the FTSE Canada Universe Bond Index (“the benchmark”) rose 0.4% over the
quarter.
• Duration was maintained modestly lower than that of the benchmark. Despite the improved tone in risk assets and market sentiment overall, bond
yields were slightly higher at the end of the quarter. This modest rise in yields, combined with a lower duration, meant that the movement in rates
over the period detracted from relative performance.
• On balance, over the quarter, the Fund maintained an overweight to credit. The market’s general “risk-on” tone helped to push credit spreads
narrower. The overweight in credit, coupled with the outperformance of that sector, added to relative performance.
• The portfolio manager believes that while credit spreads have recovered the majority of their widening, the fundamental economy remains damaged,
with potential for further deterioration and a fragile path towards recovery. Consequently, they are maintaining a modestly defensive posture in credit
risk until either greater economic visibility occurs, or credit spreads better compensate for the incremental risk.
• Given the outstanding performance in credit spreads over the last several months, the portfolio manager believes that the market for credit has
become expensive and has purchased credit derivatives to hedge some of the credit risk.

** An annualized statistical measure of risk of a fund’s performance around its average. It is calculated based on a fund’s monthly returns over a specified time period.
The greater the standard deviation, the greater the fund’s volatility. a It is the most recent income received by the fund in the form of dividends, interest and other income
annualized based on the payment frequency, divided by the current market value of the fund’s investments. It is gross of any fees or expenses of the fund. b A measure of
sensitivity of bond prices to changes in interest rates. Generally, the higher the duration the more volatile the bond’s price will be when interest rates change. c For the month
indicated in the as of date, the distribution paid is multiplied by 12, divided by the month end net asset value of the fund and annualized. This excludes any additional annual
distributions that may have been paid in the month.

Commissions, trailing commissions (if applicable), management fees and expenses all may be associated with mutual
fund investments. Please read the ETF facts, fund facts or prospectus of the relevant mutual fund before investing. Mutual
funds are not guaranteed, their values change frequently and past performance may not be repeated. The indicated
rates of return are the historical annual compounded total returns for the period indicated including changes in unit value
and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or
income taxes payable by any unitholder that would have reduced returns. For a summary of the risks of an investment
in the BMO Mutual Funds, please see the specific risks set out in the prospectus. ETF Series of the BMO Mutual Funds
trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase
the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination. This commentary is for
information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal
advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional
advice should be obtained with respect to any circumstance.
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